01/09/2007

Meeting Minutes for:
YCAA Monthly Board Meeting
Yuma International Airport, Conference Room
Tuesday, January 09, 2007 at 04:10 PM

Call to Order:
Call to Order
The Yuma County Airport Authority, Inc. (YCAA) Regular Meeting of the Board of Directors was called to order at 4:10 p.m. in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was David Egeberg, President.

YCAA MEMBERS PRESENT WERE:
David Egeberg, President
Mark Pancrazi, 1st Vice President
Karl Moedl, 2nd Vice President
William Gresser, Treasurer
Troy Edwards, Secretary
Dunbar Norton, Director
Waldo Israel, Director
John Sternitzke, Director
Robert Ingold, Director
Robert McLendon, Director
Albert Gardner, Director

ALSO, PRESENT WERE:
Craig Williams, Airport Director
Gerald Hinkle, Jr., Director of Finance & Administration
Brian Thompson, Operations Director
Lynn Hall, Director of Maintenance
Jennifer Egeberg, Executive Secretary
Dale Borgman
Paul Rachels
John Ewing

2. Approval of Minutes
The President called for a motion to approve the minutes of the Yuma County Board of Supervisors and Yuma County Airport Authority joint meeting on November 8, 2006. Mr. Gresser so moved. Mr. Norton seconded the motion. Motion passed unanimously.

The President called for a motion to approve the minutes of the Regular Board Meeting of December 12, 2006 as amended. Mr. Norton so moved. Mr. Gresser seconded the motion. Motion passed unanimously.

3. Committee Reports
A. Finance Committee – Dave Egeberg
Mr. Egeberg reported that the Finance Committee did not meet. Mr. Hinkle reported on the financial statement. Working Capital as of January 9, 2007: General Checking - $92,733; Capital Reserves $845,556 for total cash balance of $938,289. Accounts Receivable $54,805; Accounts Payable - $30,116 for a net working capital of $962,978. Restricted Funds as of January 9, 2007: PFC Account - $20,189. Balance in Notes Payable as of January 9, 2007: $3,177,079. For the three months ending December 31, 2006, actual revenues were $390,709 and a budget of $372,571 with a variance of 5%. Actual expenses were $389,951 and a budget of $385,301 with a variance of (1%). Mr. Gardner asked if the budget had yet been revised. Mr. Hinkle replied that the budget had not officially been amended.

B. Development Committee - Mark Pancrazi
Mr. Pancrazi reported that the Development Committee did not meet.

C. Leasing Committee – Waldo Israel
Mr. Israel reported that the Leasing Committee did not meet.

D. Marketing Committee - Dunbar Norton
Mr. Norton reported that the Marketing Committee did not meet. The group of air cargo investors should be here by the end of this month.

E. Personnel & Elections Committee – Waldo Israel
Mr. Israel reported that the Personnel & Elections Committee did not meet.

F. By-Laws Committee – Troy Edwards
Mr. Edwards reported that the By-Laws Committee did not meet.

G. Retail Services & Publicity Committee - Bill Gresser
Bill Gresser reported that the Retail Services & Publicity Committee did not meet. He inquired about how the closing of the gift shop was being perceived. Mr. Hinkle recapped that the gift shop had been closed as of November 2006. Mr. Hinkle is currently trying to liquidate the remaining merchandise and fixtures. Selected items such as magazines, newspapers, and personal items are currently being sold through the restaurant.

H. Legislative Affairs Committee – Robert McLendon
Mr. McLendon reported that the Legislative Affairs Committee did not meet.

4. Reports By Airport Director - Mr. Williams
At the start of Mr. Williams' briefing Mr. Egeberg suggested that rather than vote on each item individually throughout the presentation it would be best to brief all items and then vote on the action items at the end.

Item A: Discussion and possible action to authorize the Airport Director to sign a consulting services contract with Steven Fischer - Architects to provide Architectural Services for the Terminal Modification for TSA and US Customs.
Mr. Williams briefed that the RFQ's had been issued, several firms responded and the selection committee selected Steven Fischer Architects. A contract price had been negotiated for approximately $95,000 from design to ribbon cutting. The percentage of cost was considered to be high, but still in the ballpark. Mr. Williams will work with Steven Fischer Architects to get an acceptable price. Mr. Pancrazi questioned the need for the terminal addition at this time.

Item B: Discussion and possible action to authorize the Airport Director to sign a consulting contract with the selected Law Firm to provide legal services for the Airport.
Mr. Williams briefed that RFQ's had been issued, three firms had responded. Mr. Williams and Mr. Hinkle had visited all responding firms and felt the decision was very difficult as all firms were very well qualified. In the end the selection committee selected Shadle and Walsma. Mr. Ingold requested that this item be discussed in executive session.

Item C. Discussion and possible action to authorize the Airport Director to continue a consulting services contract with Coffman and Associates for the design of the 40th Street Cargo Ramp.
Mr. Williams briefed that although this has been discussed in the past he wanted to review the project one additional time so that everyone was on the same page. He reviewed the decision process on constructing a concrete ramp versus asphalt. He had contacted Dave Simpson from Gilbertson and Associates on the matter. Based on estimates of the price per square yard for various solutions, Mr. Williams presented approximate sizes of what could be expected for different options. His recommendation was to select a design that would provide weight bearing capacity of two hundred thousand pounds, or sufficient to handle a Boeing 727 aircraft. Mr. Norton voiced concern that such a decision might negatively impact future cargo opportunities. Mr. Williams reviewed potential cargo installations and how the 40th street cargo ramp might be used in such an environment. Mr. Moedl emphasized that we have 2 interested parties and need to address the issue in front of us. Mr. Pancrazi agreed that we needed to get FedEx in and
to also redo the AIP. Mr. Sternitzke agreed that we needed to maximize our coverage.

Item D: Discussion and possible action for the Airport Director to proceed with a "Brief" or "Normal" Environmental Assessment, whichever is more appropriate, for a possible land purchase in the West GA area.
Mr. Williams refreshed the Board's memory that at the December Board meeting he was instructed to try to find a way to do both the EA for the land purchase plus start the design work on Taxiway F. In the interim he had received information from the FAA on the scope of work required for an EA. The recommendation from the FAA was that an EA should be a maximum of 15 pages. Additionally, the FAA had developed a "Brief EA", also called a "Short Form EA" for situations where more in depth review was not required. In either case he felt that the full $250,000, presently set aside for the EA, would not be required. He would finish investigating that option, and use a local environmental firm if that was possible. He had other environmental work that needed to be accomplished and would try to roll all the work into one local vendor.

Item E: Discussion and possible action for the Airport Director to take all necessary actions to proceed with the design of the rehabilitation of Taxiway F, including the preparation and solicitation of an RFQ for engineering services.
Mr. Williams briefed that it was important to proceed with Taxiway F as he had learned that MCAS was potentially planning to rehabilitate runway 21R/3L in CY 2008 and it made sense to coordinate Taxiway F with that work. Once he had determined the final cost of the EA for the land purchase he would move forward on the design for Taxiway F. He planned to investigate the use of a local firm if possible.

Item F: Discussion and possible action to authorize the Airport Director to submit this year's ACIP to the Arizona Department of Transportation, Aeronautics Division, and to the Federal Aviation Administration.

Mr. Williams then presented an in depth review of the current Airport Capital Improvement Plan (ACIP). He was concerned that it did not reflect a realistic strategy and that it did not focus on the Boards’ priorities. Additionally the current plan left the airport in a precarious financial position. Mr. Hinkle reviewed the current debt load and the lack of planned funding for projected future debt.

Mr. Williams stated that he had revised the ACIP to achieve what he perceived to be the Boards’ stated goals, i.e., to move forward with the planned land acquisition on the condition that it could be properly funded and to build the desired infrastructure for the airport with respect to cargo. The plan should also comply with ADOT requirements and should get the airport in synch with the FAA's grant funding cycle.

Mr. Williams said he had spoken to the ADOT loan program manager, Mike Klein, and although ADOT was aware we are interested in a loan, no loan application has been filed. In response to a question by Mr. Norton, Mr. Hinkle stated that to his knowledge no application for the ADOT loan for the land purchase had been accomplished.

Mr. Williams said that Mr. Klein said that it was possible, though not assured, that future State grants could be used to pay back the ADOT loan. No loan amounts were discussed in the conversation. Mr. Williams said he would pursue the possibility of obtaining an ADOT loan and funding it through future ADOT State grants.

Mr. Williams briefed the revised ACIP from 2007 through 2012, which identified both design projects and construction projects each year. The plan included the attempt to obtain the ADOT loan for the desired land purchase to be funded by state grants. Mr. Williams also gave a preview of the ACIP out to 2019.

Mr. Williams summarized the revised ACIP by stating that he felt it established the objectives desired by the Board, that being the completion of Taxiway F as soon as possible, and the construction of Taxiway Y over a four year period. The plan also established clear priorities for the FAA and for ADOT. It created future opportunities by opening up the affected areas for future growth and importantly, the new plan got us into the FAA grant cycle as quickly as possible.

Mr. Williams requested approval to submit the revised ACIP to ADOT and the FAA.
Item G: Discussion and possible action to authorize the Airport Director to sign all related documents for PFC Applications, Federal and State Grant Applications, and other FAA financial documentation, not to include grant acceptance/agreements.

Mr. Williams requested approval to sign and submit the revised ACIP as stated, the related PFC applications, the associated State and Federal grant applications and all other associated financial documentation. Mr. Williams said that he needed approval for these actions in the minutes. He also stated that once approved the actual grant agreements would be presented to the Board for the YCAA President's signature.

Item H: Discussion and possible action for the YCAA President to sign a Letter of Agreement concerning ARFF services provided by MCAS and an update on current discussions between the Airport Director and MCAS Air

Operations Officer.

Mr. Williams stated that he had reviewed the proposed ARFF Letter of Agreement (LOA) from MCAS Yuma and was satisfied with the document. He stated that there were outstanding questions on the Airport side, which were not affected by the LOA, and that those would be dealt with through the FAA. Once those questions were answered, and new procedures required a change in the LOA he would handle them at that time. Mr. Williams briefed that although typically letters of agreements dealt with operational matters and were signed at the Airport Director level, and that any subsequent changes would be handled between Mr. Williams and Lt Col Bonzo, it was appropriate for this first LOA to be signed by the YCAA President and the MCAS Yuma Commanding Officer.

Mr. Pancrazi asked why the LOA was necessary at all since it was not going to change what we were presently doing.
Mr. Williams explained that the LOA did address operational matters that involved coordination and that it was normal for these types of arrangements to be addressed in an LOA. It was pointed out that previous versions of the LOA included a reference to existing lease issues but this was no longer desirable.

In response to that question, there followed a brief clarification by Lt Col Bonzo over the MCAS desires to outright purchase the land currently under question. After further discussion Mr. Williams stated that he is scheduled to give the Yuma County Board of Supervisors an update as to their progress next week. In answer to a question, Mr. Williams stated that he would provide a written letter to the YCBOS stating the YCAA's position on the land; specifically it is the position of the YCAA that the YCBOS should assign the land in question to YCAA which would then in turn lease the land, as long as possible, to MCAS Yuma. It was suggested that failing that arrangement, the County should lease the land.

Item I. Discussion and possible action on a resolution of support for MCAS as an "Aviation Partner".
Mr. Williams briefed the board on potential growth opportunities with respect towards developing a cooperative relationship with MCAS Yuma. The current global situation is going to result in an upsurge in government spending due to many military weapons systems reaching the end of their useful life. At the same time the United States is facing an increased threat around the globe due to our adversary's increasing technological sophistication and the presence of hotspots around the world.

One of the planned weapons systems acquisitions that is underway is the purchase of the F-35 Lighting II, previously referred to as the Joint Strike Fighter. This is going to be a major acquisition for the government and includes manufacturing partners from nine different nations and includes over 1,000 sub-system suppliers. Literature refers to a planned buy of between 3,000 and 5,000 aircraft. This is important to us because MCAS Yuma may be one of the first locations for the new aircraft.

Mr. Williams suggested that some of the defense contractors associated with the F-35 procurement might be interested in leasing hangar space on the same airfield with one of the first major installations of the aircraft.

He explained that these kinds of tenants were beneficial to the airport. They had a relatively low impact on airfield operations because they were primarily involved in maintenance. Additionally they had a high economic impact because defense contractors generally have very well paid employees that result in high job multiplier effects. Finally, the benefits of a defense contractor complex could be obtained for a relatively low initial investment. Mr. Williams related that at his last airport, an investment of $900,000 by the City was enough to build a 12,000 square foot speculative hangar that a defense contractor moved into, even before the construction was complete. If we could get a grant for an initial hangar construction project and then lease it to a defense contractor we could use that income to finance additional hangars and over time grow a valuable industrial hangar complex.

Mr. Williams said all this was possible with just the prospect of the F-35 aircraft but that we had even more opportunities because of the possibility of the V-22 Osprey coming to MCAS Yuma. In addition to the Osprey, we have the Yuma Proving Grounds (YPG) as another valuable resource. Every munitions and every weapons system that enters every branch of the military is first tested at YPG. Although he did not know of any personally, Mr. Williams has been told that there are defense contractors that operate out of Phoenix because that is the nearest they can get to YPG.

Mr. Williams stated that even with all these opportunities we have a serious obstacle to overcome and that is our reputation as having a poor relationship with MCAS Yuma. He has had this fact presented to him in his dealings with many agencies, including the FAA, ADOT and the County.

Mr. Williams said he felt it was necessary for the YCAA to take an important first step in getting past that reputation and that a resolution was one possibility. He presented a resolution to the board which acknowledged that MCAS Yuma and YCAA share the use of the airfield, that MCAS is important to our Nation's security and that both MCAS and YCAA provide important economic benefits to the city and county through our respective aviation efforts. The resolution stated the YCAA was identifying itself as an "Aviation Partner" with MCAS and that staff and management were directed to work in a spirit of cooperation and goodwill with MCAS.

After a brief discussion Mr. McLendon moved to take immediate action on Item I to adopt Resolution #01-07 in support for MCAS as an "Aviation Partner". Mr. Gresser seconded the motion. Motion passed unanimously.

Item J: Discussion and possible action on the scheduling of committee meetings.
And

Item K: Discussion and possible action on establishing a master calendar for use by the board members and staff.
Mr. Williams said briefly that he was going to work on establishing standard days for committee meetings and would get back with the Board on those efforts.

This concluded Mr. Williams' portion of the presentation.

Action:

Mr. Sternitzke moved to adopt items C through H and J and K. Mr. Israel seconded the motion. The motion passed unanimously.

5. Military Liaison
LtCol. Bonzo expressed his appreciation of an open discussion. He stated it was interesting to hear the different perspectives of the Board. He would like to have a meeting between the Marine Corps and the Board for further discussions. Mr. Ingold asked if we could meet once a year. LtCol. Bonzo stated he would like to meet more frequently than that, perhaps quarterly to establish a working relationship. Mr. Sternitzke stated that if we were able to share ground-level information, it would save the Authority huge expenses. Mr. Ingold stated that he would like to make YIA a model of how a base and airport should work together.

6. Call to Public
Mr. Borgman expressed his contentment of the direction of the airport, the Board, and improved relations with the MCAS-Yuma.
Mr. Pancrazi had to leave prior to Executive Session.

7. EXECUTIVE SESSION
The board retired to executive session and discussed items A and B.

8. RECONVENE REGULAR BOARD SESSION
The board reconvened.
Mr. Sternitzke moved to adopt Item A to authorize the Airport Director to sign a consulting services contract with Steven Fischer - Architects to provide Architectural Services for the Terminal Modification for TSA and US Customs. Mr. Gresser seconded the motion. The motion passed unanimously.
Item B was tabled for the time being.

9. ADJOURNMENT
There being no further business before the YCAA. The President called for a motion to adjourn. Mr. Norton so moved. Mr. McLendon seconded the motion. Motion passed unanimously. Meeting adjourned at 6:40pm.



// Approved //
Craig Williams
Airport Director
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